February 2016

[admin]

Growth slowing, and now this:

The eurozone lurched back into deflation this month, putting more pressure on the European Central Bank to ramp up stimulus when it meets next week. Prices fell by 0.2pc in the year to February, according to figures published by Eurostat. The decline confounded economists, who had expected prices to remain steady.

Eurozone slides back into deflation

Without nominal income growth, how are countries supposed to stabilize their debt levels (let alone reducing them)

With German deflation, how will countries that lost 20-30% competitiveness in the first decade of the euro recoup that lost competitiveness? By letting prices fall faster than German prices? What will that do for their debt dynamics?

Inquiring minds like to know. With the Brexit vote looming and the refugee crisis worse than ever, Europe is really in a big funk.